Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives *Note that there is no holding cost for June. 20 days 150 disk drives" Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires -- plus signs omitted; negative numbers for layoffs.) The total hiring cost = $ The total inventory carrying cost = $ The total cost, excluding normal time labor costs, is = $ Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October 5 November 6 December (Enter your response as a whole number.) Demand 350 450 450 650 780 700 $8/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker (Enter your response as a whole number.) Beginning Inventory 150 (Enter your response as a whole number.) Units Produced Personnel on Staff 8 8 people 4 hours Hire / Layoff Ending Inventory
Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day. You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy? Other data Current workforce (June) Labor-hours/disk drive Workdays/month Beginning Inventory Ending Inventory O disk drives *Note that there is no holding cost for June. 20 days 150 disk drives" Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires -- plus signs omitted; negative numbers for layoffs.) The total hiring cost = $ The total inventory carrying cost = $ The total cost, excluding normal time labor costs, is = $ Costs Holding cost Subcontracting Regular-time labor Overtime labor Hiring cost Layoff cost Month 0 June 1 July 2 August 3 September 4 October 5 November 6 December (Enter your response as a whole number.) Demand 350 450 450 650 780 700 $8/disk drive/Month $80/disk drive $12 $18/hour (above 8 hours) $40/worker $80/worker (Enter your response as a whole number.) Beginning Inventory 150 (Enter your response as a whole number.) Units Produced Personnel on Staff 8 8 people 4 hours Hire / Layoff Ending Inventory
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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Transcribed Image Text:5. Consuelo Chua, Inc., is a Columbian disk drive manufacturer in need of an aggregate plan for July through December. The company has gathered the following data given in the tables. There are 8 hours of production per day.
You manage a consulting firm down the street from Consuelo Chua, Inc., and to get your foot in the door, you have told Ms. Chua that you can do a better job at aggregate planning than her current staff. She said, "Fine. You do that, and you
have a 1-year contract." To make good on your boast, you propose a new strategy. Hire 5 workers in August and 5 more in October, and subcontract to meet the rest of the demand. What will be the cost of this strategy?
Other data
Current workforce (June) 8 people
Labor-hours/disk drive 4 hours
Workdays/month
20 days
Beginning Inventory 150 disk drives*
Ending Inventory
O disk drives
*Note that there is no holding cost for June.
Fill in the table below. (Enter all responses as whole numbers. In the hire/fire column, use positive numbers for hires -- plus signs omitted; negative numbers for layoffs.)
Costs
Holding cost
Subcontracting
Regular-time labor
Overtime labor
Hiring cost
Layoff cost
The total hiring cost = $
The total inventory carrying cost = $
The total cost, excluding normal time labor costs, is = $
Month
0 June
1 July
2 August
3 September
4 October
5 November
6 December
(Enter your response as a whole number.)
Demand
350
450
450
650
780
700
(Enter your response as a whole number.)
$8/disk drive/Month
$80/disk drive
$12
$18/hour (above 8 hours)
$40/worker
$80/worker
Beginning
Inventory
150
(Enter your response as a whole number.)
Units
Produced
Personnel on
Staff
8
Hire /
Layoff
Ending
Inventory
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